Shares of Netflix, Inc. (NFLX) surged on Wednesday morning after the company released its fourth quarter financial results after market close on Tuesday. Here’s what the results mean for mutual fund investors.
Inside NFLX’s Results
Earnings
The company reported earnings of $83.4 million, or $1.35 per share, up from $48.4 million, or 79 cents per share, last year. On average, analysts expected to see EPS of 45 cents per share.
Revenue
Revenue rose to $1.48 billion from $1.18 billion a year ago. Analysts expected to see revenue of $1.48 billion.
Big Price Swings Normal for NFLX
Earnings season has been a very volatile time for companies like Netflix. Investors that watch Netflix expect to see large price swings in either direction when the company releases its earnings report. That being said, this stock is not ideal for conservative investors.
In its most recent report, Netflix reported that its international subscriptions growth has exceeded its growth in the U.S. Despite the excitement over this growth, the stock is extremely expensive from a valuation standpoint.
Mutual Funds to Watch
Investors interested in NFLX may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FCNTX | Fidelity® Contrafund® | 1.74% |
| VTSMX | Vanguard Total Stock Mkt Index | 1.58% |
| PRGFX | T. Rowe Price Growth Stock | 1.45% |
The Bottom Line
The funds listed above allow investors to gain exposure to NFLX while remaining diversified. Investors interested in Netflix may also be interested in Amazon (AMZN) and Time Warner Cable (TWC).